RETAIL AUTOMATION & PAYMENT SOLUTIONS: Beyond the beep

How automation and smarter payments are rewriting retail rules

In 1974, a pack of Wrigley’s Juicy Fruit chewing gum was scanned through a checkout in a supermarket in Troy, Ohio, the first product in the world to pass through a barcode reader. It took a single beep. Nobody in that store could have predicted that this small moment would underpin a future of trillions of rands’ worth of retail transactions across the globe. As Andrew Dremin notes on LinkedIn, that scan didn’t just change how products were identified, it changed how retail thought about technology altogether.

Fifty-two years on, the industry is living through another such inflection point. Only this time, changes are arriving faster, they’re more complex and the stakes for local retailers and wholesalers are higher. Across the country’s supermarkets, formal independents and wholesale operations, a profound transformation is under way. AI-powered replenishment, RFID-enabled inventory tracking, self-check out systems and integrated digital payment platforms are shifting from ‘nice-to-have’ to operationally critical. At the same time, the country’s payment landscape remains stubbornly divided, sophisticated in its formal retail corridors and deeply cash-reliant in the informal and independent sectors.

Automation growth and integration

The global retail automation market is on a strong growth trajectory. According to Polaris Market Research, the sector is forecast to reach US$53.01 billion (R883 billion) by 2032, expanding at a compound annual growth rate of 9.2%. The drivers include operational costs, labour pressures, shifting consumer expectations and the relentless demand for supply chain efficiency. In South Africa, these pressures are amplified by factors relevant to the local context – from load shedding and infrastructure constraints to high shrinkage rates and a consumer base that spans income groups and retail formats with vastly different technology profiles. For Casey-Lee Venter, Marketing, Communications and Brand Head at Arch Retail, the starting point is integration. Arch’s approach centres on a natively integrated ERP for retail – a single platform that unifies back-office operations with point of sale rather than layering disconnected tools on top of each other. She explains…

“Complete integration is vital for successful retail automation. Our eReplenish system doesn’t just track inventory – it integrates with suppliers, manages purchase orders, tracks deliveries and handles invoice processing. This end-to-end automation eliminates manual errors and ensures optimal stock levels.“

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This sort of thinking, where automation is designed around how retailers actually operate rather than as a bolt-on to existing systems, is increasingly what sets effective implementations ahead of the game. Zebra Technologies approaches the same challenge from a different angle that focuses on bringing intelligence and real-time visibility to the store floor itself. Neil Gouveia, Director (Africa) at Zebra Technologies, describes a portfolio that ranges from RFID-enabled inventory systems to mobile computing devices, workforce scheduling tools, self-checkout solutions and intelligent in-store kiosks. He says…

“Together, these solutions enable retailers to create smarter, more agile store environments that meet evolving customer expectations while driving measurable efficiencies.“

The revenue you’re already losing Perhaps the most direct argument for retail automation is what it does to on-shelf availability. Duncan Boustead, Sales Director at Businesspod, retail field team management experts Repsly’s regional partner, frames the problem… 

“Up to 44% of workers still use manual methods for audits, leading to inaccurate phantom inventory data that does not reflect real-time shelf status.“

This gap between what systems say is in stock and what shoppers actually find on shelves costs retailers dearly. Boustead cites research suggesting that maintaining high on-shelf availability – typically targeted at 95-98% – functions as a primary revenue-protection mechanism. Even a 1% improvement in availability can drive sales upwards by 20 to 35 basis points. More consequentially for brand loyalty, 70% of shoppers will switch stores after three out of-stock experiences. Boustead notes…

“Full shelves directly influence purchasing decisions and capture revenue that would otherwise be lost to competitors.“

Repsly’s platform addresses this through real-time field data capture, unlike traditional monthly reporting cycles, where, as Boustead puts it, “by the time you have identified the issues and sent someone to solve them, the issues may no longer be issues.” Live data changes the speed of response. AI image recognition accelerates it further, allowing field representatives to photograph a shelf and receive instant feedback on planogram compliance, pricing accuracy and stock gaps – without manual counting or checking.

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AI: the intelligence layer

Across all three companies, artificial intelligence surfaces as the connective tissue; the layer that turns data into decisions. At Zebra Technologies, AI is embedded in computer vision that runs inside self-checkout scanners. “Computer vision can see items as they’re scanned, ensuring that what it sees correlates with scanned barcodes,” says Gouveia. “This can reduce deliberate and accidental scanning errors.” The same technology, applied to planogram shelf inspection in collaboration with augmented reality, takes cognitive load off shop assistants by making inventory checks faster and more accurate. Zebra is also developing what Gouveia describes as ‘ambient intelligence’. “We are moving from the IoT to ambient intelligence, where inventory and workflows are updated in real-time,” he says. “AI will turn data into intelligence.”

For Arch Retail, AI’s immediate commercial value lies in demand forecasting, dynamic pricing analytics and predictive insights into inventory needs. “This allows retailers to respond faster to demand changes while protecting margins,” says Venter. It also addresses one of South Africa’s more persistent retail challenges: food waste. Automated replenishment systems that align orders with actual consumption patterns – factoring in seasonal demand, promotional uplift and lead times – reduce both over- and under-ordering. Given that food security remains a major concern across much of the country, the ability to minimise perishable waste while keeping shelves stocked is key. Boustead looks ahead to what he calls ‘true AI’ in field execution; systems capable of interrogating multiple data sources, drawing insights across brands, chains, stores and regions and dynamically adjusting execution priorities as data changes. “The feedback loop then continues with more data and insights and a tweak in the next execution. This will deliver value at a scale never seen before. The quickest movers here will have a significant advantage.”

RFID: The barcode’s successor

If the barcode was retail’s first great technology leap, RFID increasingly looks like the next. The technology has long promised better inventory visibility and faster cycle counts, but for years, cost was the barrier. However, that’s changing. The cost of RFID tags has dropped approximately 80% over the past decade, to as little as a rand per tag, according to recent reporting, making it viable across a much wider range of product categories. In South Africa, RFID adoption is accelerating. Market data published in early 2026 by Flex Digital Solutions estimates the local RFID tags segment at approximately US$114.73 million (R1.91 billion) in 2025, with wireless RFID readers accounting for a further US$100.09 million (R1.66 billion) in market value. Adoption is scaling fastest in logistics, warehousing and distribution – sectors where operational visibility and throughput directly affect margins.

Zebra’s RFID solutions are central to its retail offer, enabling faster, more accurate cycle counting and real-time inventory visibility. “RFID technology combined with real-time analytics streamlines restocking by providing accurate, up-to-date visibility of stock levels,” says Gouveia. In distribution centres, fixed industrial scanners installed along conveyor systems automate in-line scanning, processing items in real time without manual intervention. The result is higher through put and fewer errors, precisely the efficiency gains that make the investment case for automation compelling.

According to International Supermarket News, reporting on Africa’s retail technology market, RFID and mobile self-checkout pilots have already been launched in South Africa, setting a foundation for broader deployments across supermarket formats.

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Self-checkout in South Africa: convenient but complex

Self-checkout is the most visible face of retail automation and, in South Africa, also one of the most contested. The technology reduces queues, lowers labour costs for staffed lanes, and gives shoppers greater autonomy over their checkout experience. But it also brings real risks in a market where shrinkage is already significant and where margins leave little room for error. Retailers operate on net margins of around 6%, according to recent industry analysis reported in IOL Business, which means just six cents of every rand spent is profit after operating costs. Theft at unstaffed till points represents a material threat to those margins.

In practice, most retailers deploying self-checkout continue to staff the area with employees supervising multiple machines simultaneously, intervening when systems flag issues or customers need assistance. According to Global Market Insights, the Middle East and Africa self-checkout market was valued at US$75.9 million (R1.26 billion) in 2025, with growth expected to continue as smartphone penetration and digital wallet adoption increase across South Africa and the UAE. 

In terms of payment solutions, as an example, Arch Retail’s self-checkout system supports multiple payment methods – contactless cards, mobile payments, QR codes and traditional chip and-PIN – within a single transaction flow. Venter notes that the system is “being adopted not just by large supermarket chains but also by smaller independent retailers who want to offer the same convenience their customers expect”. Meanwhile, Zebra’s parallel self-checkout solutions also incorporate computer vision for scanning verification, reducing the errors, both accidental and deliberate, that erode margins at the point of sale.

The payment divide

The local payment landscape in 2026 presents a paradox. Digital payment adoption in the formal retail sector is accelerating fast, yet cash remains the dominant transaction method across the South African economy as a whole. According to Kitso Lemo, Associate Director at Boston Consulting Group, speaking to ITWeb TV in February 2026, cash still accounts for over 50% of all transactions nationally, with more than R180 billion in circulation. In the formal sector, cash’s share of transaction value has declined from 40-45% a decade ago to around 12-13% today. But because smaller, lower-value purchases tend to be cash-based, approximately half of all transactions by volume remain cash dependent, even in formal retail. In the informal economy, the picture is that around 95% of retail storefronts – spaza shops, township wholesalers, rural outlets – operate informally, and around 90% of consumer-to business transactions in that sector are cash-based. Lemo identifies the cost burden on merchants as a key structural barrier: POS device costs plus transaction fees ranging between 1.5% and 4% can meaningfully erode margins that are already thin. He says…

“Merchants often tell us they want to digitise, but they can’t afford it.“

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Despite these structural constraints, digital payment momentum is real. Real-time account to-account systems like PayShap are processing approximately one million transactions per day. Contactless payments are also growing steadily in formal retail. The pipeline of innovation, from biometric authentication and token-based transactions to deeper loyalty integration within digital wallets, points to a continued shift over the next three to five years. Arch Retail’s Venter anticipates this trajectory in its own product roadmap. She identifies the rise of mobile wallets and tap-to-phone terminal solutions, growth in token-based transactions, biometric authentication and the full convergence of in-store and online payment experiences as defining the next phase.

“The focus is on simplifying operations rather than adding complexity,” she says – a principle that applies as much to payments as to any other dimension of retail automation. From Zebra’s perspective, Gouveia points to expanding shopper choice as a defining trend: “Innovations around self-scanning, payment options, AI and data are creating more personalised shopping experiences.” Ask any of these vendors what the biggest barrier to automation adoption is and the answer converges on the same point: integration. Not the technology itself, but the complexity of connecting new systems to legacy infrastructure and the risk and cost that complexity introduces. Arch’s approach is to build from a foundation of full integration from the outset. Its ERP (Enterprise Resource Planning) is designed so that sales update stock in real time, master data flows automatically from head office to stores and e-commerce channels stay synchronised with physical inventory. Modular deployment allows retailers to add on components without disrupting day-to-day operations. Data migration and mapping for smooth transition from older solutions is central to how Arch manages the transition risk, Venter explains. Zebra focuses on interoperability and solutions that enhance and extend existing retail systems rather than requiring wholesale replacement. “Agnostic solutions are interoperable with legacy systems, which avoids the cost of a complete replacement,” says Gouveia.

But he’s also candid about when legacy systems need replacing: “Some times, systems need full replacement as the cost of maintenance is high, the technology carries too many limitations and revenue is lost using outdated systems.” Getting that judgement call right – upgrade versus replace – is one of the most consequential decisions a retailer makes in their automation journey. Zebra’s flexible, customisable, scalable approach is specifically designed to allow businesses to evolve at their own pace, without forcing disruptive change. For Repsly, integration means connecting field execution data to broader retail decision-making, linking what a merchandiser sees in a store in Durban to what a category manager needs to know in Johannesburg.

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Boustead sees call cycle management and territory planning, which is currently dominated by manual processes and gut feel, as among the next areas where AI-driven automation will have the greatest impact. “Soon the guess and grunt work behind these plans will be largely removed,” he says.

Security, compliance and protecting data As retailers collect and process more data, the obligations around protecting that data grow correspondingly. South Africa’s POPIA (Protection of Personal Information Act) sets the domestic framework, and international standards such as PCI DSS (Payment Card Industry Data Security Standard) govern payment card security. Both demand comprehensive data security that follows information through its entire lifecycle. Arch builds end-to-end encryption and token isation into its payment systems, integrates with PCI DSS-certified gateways, and uses role-based permissions and override logging to flag unusual activity. AI-driven insights add a behavioural layer to fraud detection, identifying patterns that deviate from expected activity before they translate into losses. Venter sees security as intrinsically linked to efficiency. “AI is already being used to detect fraud and eliminate vulnerabilities in our systems. We’re seeing retailers reduce losses significantly while improving their operational efficiency.” Reduced cash transactions, a natural consequence of digital payment growth, also lower the physical security risks that remain an operational reality for many retailers. For a sector where cash handling and armed robbery remain genuine concerns, the security case for digital payments runs in parallel with the convenience case for consumers.

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Data-driven planning and connected ecosystems

Retail moves fast. The picture that’s emerging is one of accelerating change, driven by the convergence of AI, IoT, RFID and payment innovation. Gouveia points to the adoption of multimodal, on-device and agentic AI, enabling retailers to move from reactive decision-making to proactive, data driven planning across inventory, operations and customer experience. “Retail shops will increasingly make each surface a data point, with retail media providing new value for brands, retailers and shoppers.” Zebra’s acquisition of Elo Touch Solutions positions the company to lead in this connected surface space. The expansion of IoT platforms will play an important role too, creating ecosystems where devices, systems and data sources are seam lessly linked for real-time visibility across the value chain. Venter at Arch anticipates AI-driven predictive analytics for stock optimisation, robotics in distribution centres for faster order fulfilment, end to-end real-time data platforms enabling unified commerce and the full mainstreaming of friction less payment technologies. The emphasis throughout is on unity; systems that work together rather than in silos, giving retailers and wholesalers a coherent picture of their business from shelf to back office to e-commerce. Boustead, looking at the supplier side of the retail relationship, sees the biggest game changer as true AI capable of interrogating disparate data sources and dynamically adjusting execution priorities. “The ability of AI to investigate various disparate data sources, draw insight and task users to implement a series of most impactful changes or initiatives – done by brand, chain, store, region and country – will deliver value at a scale never seen before. The only thing left to say is: how much more can things be optimised? How much juice is left to be squeezed?”

Why delivery control is critical for hardware retail, wholesale & distribution

In hardware retail, wholesale and distribution, the customer experience does not end at the point of sale. It ends when the right products arrive at the right place, at the right time, in the right quantities.

Whether delivering cement, timber, roofing materials, plumbing supplies, fasteners, power tools or buy-out items, fulfilment is one of the most important links in the supply chain. A delayed or incorrect delivery can disrupt construction schedules, delay installations, increase costs and negatively impact customer relationships.

Despite its importance, delivery and collection management is often handled through disconnected processes, spreadsheets, manual schedules, phone calls and paperwork. These fragmented methods create operational inefficiencies, reduce visibility and increase the likelihood of costly errors. Without proper control, businesses face challenges such as stock discrepancies, vehicle overbooking, inefficient route planning, poor communication, missed delivery windows and unnecessary administrative effort. As delivery volumes increase, these challenges become more difficult to manage and more damaging to profitability.

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The hardware sector presents unique operational demands. Deliveries frequently involve bulky, heavy, high-value and mixed-load products. Orders may require multiple deliveries, phased project fulfilment, direct supplier buy-outs or strict contractor delivery windows. Managing these requirements without an integrated system places pressure on staff, vehicles, inventory and customer service teams. This is why delivery control has evolved from a logistics function into a business-critical operational process. When delivery and collection management is integrated directly into the sales environment, businesses gain complete visibility from order confirmation through to final delivery. Customer details, stock allocations, delivery instructions, vehicle scheduling, dispatch activities and invoicing all operate within a single workflow. The result is greater accuracy, improved accountability, and faster decision-making.

For management teams, access to real-time operational information provides a clear view of delivery activity, resource utilisation and potential bottlenecks before they become service failures. For customers, the benefits are equally important. Contractors, developers and trade buyers rely on dependable supply chains to keep projects moving. Accurate deliveries, clear communication and reliable service strengthen trust, encouraging long-term business relationships.

As competition continues to intensify across the retail and distribution landscape, operational efficiency has become a key differentiator. Businesses that can consistently deliver products accurately and on schedule are better positioned to protect margins, improve customer retention and enhance their reputation in the market.

Effective delivery control is no longer simply about moving products from one location to another. It is about creating a seamless connection between sales, inventory, logistics and customer service. It provides the visibility, structure and accountability required to operate efficiently in a demanding environment.

In an industry where reliability matters, delivery control is not an optional extra—it is a fundamental component of business success. The businesses that invest in managing this process effectively are the ones best equipped to meet customer expectations, improve operational performance and drive sustainable growth.

AI, RFID and integrated payments: the future is here

The picture from the companies operating in this space is that, for many retailers, the future is here. The barcode changed everything in 1974. AI, RFID and integrated payments are changing everything now. What’s less certain is the pace at which the full retail ecosystem – formal and informal, urban and rural, well-capitalised and resource-constrained – can adopt and benefit from these tools. The country’s two-speed payment dynamic is a useful metaphor for the wider technology challenge: the necessary infrastructure and innovation exist, but access to it is unevenly distributed. Vendors who understand that reality, who build for integration, flexibility and phased adoption rather than demanding transformation overnight, are the ones best positioned to make a genuine difference in this market.

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Retail technology should start with process, not products

Retailers are operating in one of the most demanding commercial environments in recent memory. Across grocery, supermarket, wholesale, pharmacy and speciality retail, leadership teams are dealing with margin pressure, rising operating costs, supply chain volatility, changing customer journeys, labour productivity constraints and increasing expectations for speed, availability and service consistency. Technology is often seen as the natural answer. Yet many retailers already have significant technology investments across point-of-sale, ERP, warehouse management, e-commerce, loyalty, reporting, planning and finance. The problem is not always a lack of systems. More often, it is the absence of a coherent technology strategy that is anchored in the way the business actually creates value.

When technology is selected without a clear process architecture, it can make complexity worse. Store operations, finance, procurement, merchandising, warehouse teams and customer-facing employees may all work from different versions of the truth. Data becomes fragmented. Processes become inconsistent. Reporting becomes retrospective rather than predictive. Vendors implement software, but the business still struggles to translate the investment into measurable improvements in cost, service, stock availability, productivity and customer experience. This is why retail transformation should start before technology selection.

A retailer first needs to understand where value is created, where value leaks, which processes are critical, which activities should be standardised, and which processes should be simplified, automated or redesigned. Tools such as ARIS can play an important role in this foundation by helping organisations model, analyse, govern and continuously improve business processes. In a retail environment where operating models are changing quickly, this type of process intelligence helps executives identify where to focus and how to sequence transformation with less risk.

Once the process foundation is clear, technology decisions become more purposeful. Warehouse and fulfilment operations, for example, need more than basic inventory visibility. They require disciplined execution across receiving, put-away, replenishment, picking, packing, dispatch, labour utilisation and service performance. Solutions such as Infor WMS can support these requirements by helping retailers improve warehouse orchestration, inventory accuracy, order fulfilment and operational productivity.

Similarly, retail finance and executive teams need more than spreadsheet-based budgeting and static reports. Modern enterprise performance management capabilities, such as Infor EPM, can support integrated planning, forecasting, consolidation, scenario modelling and more reliable performance visibility. In an environment where costs, demand and supply conditions change quickly, this enables management teams to make better decisions with greater confidence. Integration is equally important. Retailers rarely operate on a single system. They depend on a combination of ERP, POS, WMS, e-commerce, supplier platforms, financial systems, customer platforms and analytics tools. Platforms such as Infor OS provide an integration and innovation layer that helps connect applications, workflows, data, APIs and user experiences. This matters because retail performance depends not only on the strength of individual applications, but on how well the entire technology estate works together.

Emerging capabilities include AI-assisted reporting, predictive analytics, process intelligence, workflow automation, low-code application development and intelligent alerts. These tools can support faster decisions, reduce manual effort and improve visibility across the organisation. However, their value is only fully realised when they are connected to well designed business processes and governed by clear business outcomes. This is where the role of a trusted advisor becomes critical. ISB Optimus is a leading Infor partner and ARIS partner, but our value begins long before software implementation.

We help retailers assess their operating model, define and optimise their processes, select fit for-purpose technology, manage the digital transformation journey, support change adoption, track benefits realisation and provide ongoing support after go-live. Retail transformation requires a partner that can engage the boardroom, the warehouse, the store, finance, supply chain, IT and operations in one integrated programme. With deep experience in performance engineering, process excellence and digital transformation, ISB Optimus helps retailers move beyond technology deployment towards measurable business improvement.

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